Free Trade Essay

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Free trade refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country (HILL, 2008, P: 157). Free trade can be very beneficial for countries according to many theories like Smith, Ricardo and Heckscher-Ohlin which have a clear view about the benefits. According to these theories International trade allows a country to specialize in the manufacture and export of products that can be produced most efficiently in that country, and import products that can be produced more efficiently in other countries (HILL, 2008, P: 158). In the case of the United Arab Emirates, free trade had become a crucial trend in the success they are achieving in the past decade or more. While adopting their global business plan the UAE implanted free trade thinking in the core of their plan and they were engaged in many global organizations that had the goal of liberating trade between all countries. So how do concepts of free trade apply to the UAE business plan, and what benefits this country achieved form being part of the free trade zone knowing that this country is located in a highly unstable region? The United Arab Emirates is a part of the World Trade Organization (WTO) which is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business (www.WTO.org). UAE has also concluded the negotiations and the signing of free trade agreements with Singapore, European Free Trade Association (EFTA), Switzerland, Norway, Iceland, the Principality of Liechtenstein and New Zealand

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